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Varley in Rio pay shake-up

THE former chief executive of Barclays is helping Rio Tinto overhaul its executive pay scheme after years of investor complaints that it hands bosses generous rewards for meeting easy targets.

The FTSE 100 mining giant is talking to its biggest shareholders about a new remuneration plan.

There were investor rebellions against pay in 2010 and last year, when Standard Life, one of its biggest shareholders, accused the company of offering executives “significant rewards for achieving unchallenging performance conditions”.

John Varley, who quit Barclays in 2010, replaced Andrew Gould as chairman of Rio Tinto’s remuneration committee last October. Varley is leading talks with shareholders.

In a letter ahead of next month’s annual meeting, Varley said he was “aware of the strength of feeling” that pay provokes. A draft scheme is expected by next year.

Tom Albanese, Rio Tinto’s chief executive, waived his bonus this year but still took home £4.5m. Albanese’s move, copied